Chase Credit Cards - No More 2-Cycle Method
Chase has announced that they will soon be doing away with using the 2-cycle average daily balance method to calculate your monthly balance. This is great news for Chase cardholders who carry a balance.
With the 2-cycle method, cardholders who carry irregular balances or those who have a balance and are reducing it every month will find that their month end balance will be higher than if the card use the regular 1-cycle average daily balance method. This is because the 2-cycle method uses the average of the present and previous month to calculate the monthly balance.
In the past, I have been reluctant to recommend low APR Chase credit cards (just for their low interest rate) because of this reason. But it looks like I will have to revisit their cards and update my recommendations soon.
Credit card companies have always been sneaky in the past about raising fees like over-the-limit fees etc. This is a positive move from them.
April 16th, 2007 at 4:33 am
It is official! As of March 1, 2007 Chase has stopped 2-cycle on all cards. At this time (April 2007) the people in the application department do not seem to know this. Additionally, the website has not yet reflected the new interest method. I verified this only after speaking with several different people at Chase. Only after calling general customer service a 3rd time and asking for a supervisor a 3rd time was I able to get an answer.